Today’s Action:
The key indices extend gains from last week to achieve fresh all-time highs. Broader indices follow suit.
Daily Market Review
The headline indices recorded fresh all-time highs in today’s session, despite the NSE facing technical issues during the first half of the session. The NSE reported a technical glitch that disabled trading in both cash and F&O segments for a few hours. Soon after the session resumed, the Nifty gathered momentum to record a fresh all-time high, similar to the Sensex.
The Nifty opened higher today at 9,700.85. After touching an intraday low of 9,668.10, the index advanced higher post the delayed start, touching an all-time high of 9,781.90 before finally settling at 9,771.05, up 1.09% from Friday’s closing price. The BSE Sensex, after opening higher at 31,759.93, touched an intraday low of 31,510.62. However, the index picked up steam in the second half of the session, reaching a fresh all-time high of 31,759.93. The Sensex finally settled at 31,715.64, up 355 points or 1.13% from the previous close.
The breadth, indicating the overall health of the market, was tilted towards the gainers, with 1,554 stocks gaining on BSE, compared with 1,090 stocks declining, and 166 stocks remaining unchanged.
A favorable trend was observed in the broader markets, as the Nifty Midcap and Smallcap indices recorded increments of 0.75% and 0.80%, respectively.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.41% in today’s trading session.
On the sectoral chart, all the indices, barring Nifty FMCG, recorded significant gains. The Nifty PSU Bank, IT, and Pharma indices emerged as the leaders with gains of 2.92%, 2.47%, and 1.86%, respectively. The Nifty FMCG declined marginally by 0.07%.
The steel industry in India continues to make its way out of the woods. India’s steel consumption grew 4.6% to nearly 21 million tons in the first quarter of the current fiscal year, compared with the same period last year, while steel exports jumped nearly 66% in the April-June period.
Today, the government has approved the e-commerce major Amazon’s USD 500 million investment proposal for food products retailing business in India, which will intensify the competition in the segment. As per the proposal, Amazon will open a wholly-owned subsidiary to carry out the business. It will stock food products and sell them online.
The pharmaceutical sector was in news today, with Divi’s Laboratories’ share price surging as much as 20% in today’s session, after the U.S. health regulator said it would lift the import alert imposed on the Company’s unit-II at Visakhapatnam. Meanwhile, shares of Biocon tanked as much as 9.5% intraday, as the French drug regulator found lapses at the Company’s facility in Bengaluru with respect to good manufacturing practices (GMP) for three biosimilar products.
Trading volume in the Nifty was stunted today, due to the loss of three trading hours, while the Sensex recorded heavy volumes, implying stock accumulation. The distribution day count for both the indices currently stands at 2.0, and the Indian market remains in a Confirmed Uptrend.
Current Outlook:
– Market environment conducive for new purchases, but remain selective.
– Focus on fundamentally strong stocks breaking out of strong technical patterns.
– Stay disciplined and exercise sound buy and sell rules.
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